China–US Reaches Further Agreement on Trade of Rare Earth Elements and Magnets
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Global Economy Briefs

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On June 11, US and Chinese officials finalized a new trade framework following two days of negotiations in London. One of the main sticking points was the treatment of Chinese exports of rare earth elements and magnets to the US. The Administration has conveyed that the sides have come to an agreement to now release the exports of these critical materials from China to the US, although details remain a bit unclear.

China–US Reaches Further Agreement on Trade of Rare Earth Elements and Magnets

June 13, 2025

On June 11, US and Chinese officials finalized a new trade framework following two days of negotiations in London. One of the main sticking points was the treatment of Chinese exports of rare earth elements and magnets to the US. The Administration has conveyed that the sides have come to an agreement to now release the exports of these critical materials from China to the US, although details remain a bit unclear.

Over the last two months—even during previous trade talks in Switzerland in May—China has had severe export restrictions on these materials, which are critical to the economy. Rare earth elements (REE) and other critical minerals are key inputs in the automotive, robotics, energy, and defense sectors.

Why it matters:

  • China has a global stranglehold on REE and critical minerals, controlling 70% of global production, and 90% of REE processing. Since April 4, shortly after the administration’s Liberation Day announcements and subsequent escalation of tariffs, China suspended seven kinds of rare earth metals, as well as very powerful magnets that use REE as inputs.
  • China’s tight export controls on these materials ha
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Author

Erin McLaughlin

Erin McLaughlin

Senior Economist, ESF Center

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